Salesforce (NYSE: CRM) delivered another strong quarter, proving it can grow revenue while expanding profitability—something investors have demanded for years. For Q2 fiscal 2026 (ended July 31, 2025), revenue climbed 10% year-over-year to $10.2 billion, with subscription and support revenue up 11% to $9.7 billion. The company exceeded guidance across every major metric: revenue, margins, cash flow, and current remaining performance obligations (cRPO), which rose 11% to $29.4 billion.

Operating discipline stands out. Salesforce reported a GAAP operating margin of 22.8% and a non-GAAP margin of 34.3%, marking the tenth consecutive quarter of margin expansion. Shareholders benefited too—Salesforce returned $2.6 billion in capital, including $2.2 billion in buybacks and nearly $400 million in dividends, while authorizing an additional $20 billion share repurchase program.

AI Is No Longer Just a Buzzword at Salesforce

Salesforce calls itself the “#1 AI CRM,” and financial results are beginning to validate that claim. Data Cloud and AI revenue topped $1.2 billion annually, up 120% year-over-year. Since the launch of Agentforce, Salesforce has closed over 12,500 AI-related deals, with more than 6,000 paid deployments. Analysts and customers alike are seeing real AI adoption—not just trials.

According to Ashley Akin, CPA at CEP DC, Salesforce's strategy isn’t simply about layering AI onto existing products. Instead, the company is positioning itself at the center of enterprise data governance—connecting CRM data, automation, compliance, and AI insights. She notes that enterprise clients, especially in regulated industries like government, healthcare, and finance, are willing to pay premium pricing if Salesforce can guarantee secure, compliant AI workflows.

However, Akin also emphasizes that AI doesn’t automatically translate into higher margins. Deploying enterprise AI requires significant computing costs, regulatory documentation, audit controls, and data integration infrastructure—all of which can dilute profitability if not scaled efficiently.

Agentic Enterprise — Marketing Term or Real Transformation?

CEO Marc Benioff describes customers like Pfizer, Marriott, and the U.S. Army as moving toward “agentic enterprises”—where humans and AI agents collaborate to automate workflows and decision-making. That may sound like typical Salesforce marketing, but the deal volume suggests otherwise.

Over 40% of AI and Data Cloud bookings came from expansion of existing accounts.
More than 60 enterprise deals exceeded $1 million, combining both AI and Data Cloud.
Agentforce has already handled 1.4 million service requests inside Salesforce’s own support ecosystem.

What sets Salesforce apart from AI infrastructure companies like Microsoft or Google is its focus on business logic and customer-facing execution. Rather than renting GPUs, Salesforce monetizes AI through workflow automation, lead scoring, support routing, and predictive sales insights.

Financial Health — Strong, But Not Without Questions

Salesforce expects Q3 FY26 revenue between $10.24–$10.29 billion, up 8–9% year-over-year. For the full fiscal year, management raised revenue guidance to $41.1–$41.3 billion, and increased non-GAAP margin expectations to 34.1%.

The company expects operating cash flow to grow 12–13% this year—approaching a record $15 billion. That kind of cash generation supports continued buybacks, dividends, and M&A.

Finally nterprise clients are becoming more cost-conscious. Many are optimizing software licenses, negotiating contract renewals aggressively, and consolidating redundant SaaS tools. Salesforce’s challenge will be maintaining double-digit revenue growth while not overspending to win contracts—especially as competitors like Microsoft Dynamics 365 and ServiceNow expand their AI features at scale.

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